Shift the supply curve to the right (or down).

Q70 World Commission on Environment and Development defines sustainability as:

Forms of progress that meet the needs of the present without compromising the ability of future generations to meet their needs.

Figure 7-12

71. Refer to Figure 7-12. At the equilibrium price, consumer surplus is

a.	$150.
b.	$200.
c.	$300.
d.	$500.

72. Refer to Figure 7-12. At the equilibrium price, producer surplus is

a.	$150.
b.	$200.
c.	$300.
d.	$500.

73. Refer to Figure 7-12. At the equilibrium price, total surplus is

d.

$500.

74. Refer to Figure 7-12. If the government imposes a price floor of $120 in this market, then total surplus will decrease by

c.

$225.

75. Refer to Figure 7-12. If the government imposes a price ceiling of $120 in this market, then total surplus will be

a.	$0.
b.	$125.
c.	$375.
d.	$500.

76. Refer to Figure 7-12. If the government imposes a price floor of $70 in this market, then total surplus will be

a.	$0.
b.	$125.
c.	$375.
d.	$500.

Figure 7-13

77. Refer to Figure 7-13. Total surplus can be measured as the area

d.

JNL.

78. Refer to Figure 7-13. For quantities less than M, the value to the marginal buyer is

a.	greater than the cost to the marginal seller, so increasing the quantity increases total surplus.

79. Refer to Figure 7-13. For quantities greater than M, the value to the marginal buyer is

d.	less than the cost to the marginal seller, so decreasing the quantity increases total surplus.

Figure 7-14

80. Refer to Figure 7-14. Which area represents consumer surplus when the price is P1?

b.

B

81. Refer to Figure 7-14. When the price is P1, area B represents

c.	consumer surplus.

82. Refer to Figure 7-14. Which area represents producer surplus when the price is P1?

c.

C

83. Refer to Figure 7-14. When the price is P1, area C represents

b.	producer surplus.

84. Refer to Figure 7-14. When the price is P1, area A represents

d.	None of the above is correct.

85. Refer to Figure 7-14. When the price is P1, area B+C represents

a.	total surplus.

86. Refer to Figure 7-14. Which area represents total surplus in the market when the price is P1?

b.

B+C

Figure 7-15

87. Refer to Figure 7-15. At the equilibrium price, consumer surplus is

a.

$480.

88. Refer to Figure 7-15. If the price decreases from $22 to $16 due to a shift in the supply curve, consumer surplus increases by

b.

$360.

89. Refer to Figure 7-15. At the equilibrium price, producer surplus is

b.	$640.

90. Refer to Figure 7-15. At the equilibrium price, total surplus is

c.	$1,120.

91. Refer to Figure 7-15. Assume demand increases and as a result, equilibrium price increases to $22 and equilibrium quantity increases to 110. The increase in producer surplus due to new producers entering the market would be

a.	$90.
b.	$210.
c.	$360.
d.	$480.

92. Refer to Figure 7-15. Assume demand increases and as a result, equilibrium price increases to $22 and equilibrium quantity increases to 110. The increase in producer surplus to producers already in the market would be

a.	$90.
b.	$210.
c.	$360.
d.	$480.

93. Refer to Figure 7-15. Assume demand increases and as a result, equilibrium price increases to $22 and equilibrium quantity increases to 110. The increase in producer surplus would be

d.

$570.

94. Refer to Figure 7-15. The efficient price is

c.	$16, and the efficient quantity is 80.

95. Refer to Figure 7-15. If 110 units of the good are being bought and sold, then

c.	the marginal cost to sellers is greater than the marginal value to buyers.

96. Refer to Figure 7-15. If 40 units of the good are being bought and sold, then

a.	the marginal cost to sellers is equal to the marginal value to buyers.
b.	the marginal value to buyers is greater than the marginal cost to sellers.
c.	the marginal cost to sellers is greater than the marginal value to buyers.
d.	producer surplus would be greater than consumer surplus.

Figure 7-16

97. Refer to Figure 7-16. The equilibrium price is

b.

P2.

98. Refer to Figure 7-16. At equilibrium, consumer surplus is represented by the area

b.	A+B+C.

99. Refer to Figure 7-16. If the price were P3, consumer surplus would be represented by the area

a.	A.

100. Refer to Figure 7-16. At equilibrium, producer surplus is represented by the area

c.	D+H+F.

101. Refer to Figure 7-16. If the price were P1, producer surplus would be represented by the area

a.	F.

102. Refer to Figure 7-16. At equilibrium, total surplus is represented by the area

c.	A+B+C+D+H+F.

103. Refer to Figure 7-16. The efficient price-quantity combination is

b.	P2 and Q2.

Figure 7-17

104. Refer to Figure 7-17. At equilibrium, consumer surplus is measured by the area

b.

AFG.

105. Refer to Figure 7-17. At equilibrium, consumer surplus is

a.	$36.
b.	$72.
c.	$108.
d.	$144.

106. Refer to Figure 7-17. At equilibrium, producer surplus is measured by the area

d.

CFG.

107. Refer to Figure 7-17. At equilibrium, producer surplus is

a.	$36.
b.	$72.
c.	$108.
d.	$144.

108. Refer to Figure 7-17. At equilibrium, total surplus is measured by the area

a.

ACG.

109. Refer to Figure 7-17. At equilibrium, total surplus is

a.	$36.
b.	$72.
c.	$108.
d.	$144.

110. Refer to Figure 7-17. The equilibrium allocation of resources is

a.	efficient because total surplus is maximized at the equilibrium.
b.	efficient because consumer surplus is maximized at the equilibrium.
c.	inefficient because consumer surplus is larger than producer surplus at the equilibrium.
d.	inefficient because total surplus is maximized when 10 units of output are produced and sold.

111. Refer to Figure 7-17. If 4 units of the good are produced and sold, then

a.	the cost to sellers exceeds the value to buyers.
b.	producer surplus is maximized.
c.	total surplus is minimized.
d.	the allocation of resources is inefficient.

112. Refer to Figure 7-17. If 10 units of the good are produced and sold, then

a.	the marginal cost to sellers exceeds the marginal value to buyers.
b.	producer surplus is maximized.
c.	total surplus is minimized.
d.	the marginal value to buyers exceeds the marginal cost to sellers.

Table 13-5

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